Apartment Lender Rejects TARP Funds

Citing the success of its current business model as a multifamily lender, New York Community Bancorp Inc., Westbury, N.Y., has turned down $596.0 million in Troubled Asset Relief Program funds. The company had previously applied for the money and was approved to participate in the Capital Purchase Program. But New York Community's board elected to decline the money, saying the decision was in the shareholders' best interests. Chairman, president and chief executive Joseph R. Ficalora said, "We believe that our current capital position is sufficient to support the communities we serve and to enhance shareholder value by growing our assets, our franchise, and our earnings capacity. We believe we are well positioned to continue the pursuit of our business model, which has been consistent in its emphasis on the production of multifamily loans on rent-regulated buildings, the maintenance of conservative credit standards, and the growth of our franchise through accretive acquisitions of local banks and thrifts. In 2008, the pursuit of this model resulted in the expansion of our net interest margin, the growth of our operating earnings, and the maintenance of our strong record of asset quality."